Disney clearly has the money to maintain their rides but in many instances does not. They leave many things broken and wait far to long between overhauls.I wonder if it's not partly do to some internal struggle for funding between different departments. I really find it odd that TDO spends billions on new hotels and infrastructure to draw and funnel guest's to the parks and then don't maintain the attractions the people are coming to experience.
Any Theories ??
Without getting too deep into Business 101, money is not money, especially when you get to a corporation the size (and the number of influential stockholders) that TWDC has.
Salary money (paying staff) is different from benefit money (insurance and pensions) is different from capital money (buying new things),is different from operational expenses (running those new things you bought with capital) which is different from maintenance expense (fixing the broken capital items).
Just because you have money in one bucket does not mean you can (from a business planning perspective) use it in an other bucket. Moving money from one operational company to an other at a fiduciary level can also be an accounting (and sometimes legal) nightmare.
When a company spends money on capital, The Street wants to see an ROI on that capital. Likewise, the opex and maintenance expense for a given level of capital spend needs to be in balance. These factors also impact both long term and short term financing rates. TWDC carries quite a bit of debt, on the order of $20-$25B. It has roughly a 55% debt to equity ratio.
The upshot of all of this is, you can't just say "look at all of the money the parks mark, they are just to cheap to keep things repaired. There are reasons that they do not repair things, beside just pinching pennies.
That is not to say I agree with the policy, or that i give them a pass. I understand what they are doing- taking advantage of the currently low costs to borrow to expand and buy up properties what the getting is good before the market tanks (and it is close to tanking, but that's a different story)